Technical Analysis

GBP/USD Decision Zone At 1.24 Key Resistance Line

Typography

Currency pair GBP/USD

The GBP/USD bullish retracement is not showing any signs of exhaustion. A break above the resistance trend line (red), which is the bottom of wave 1 (blue), would invalidate the wave 4 (blue). In that case, price is probably building an ABC rather than a 123 (green).

The GBP/USD has reached a critical decision zone where the breakout above resistance (red) or below support (blue/green) would indicate an uptrend or downtrend.

Currency pair EUR/USD

The EUR/USD has reached the 78.6% Fibonacci resistance level of wave 2 (purple). A potential break above the 100% level invalidates the current wave 1-2 (purple) structure. A break below support would confirm a new downtrend within waves 3 (brown/green).

The EUR/USD is facing a resistance trend line (red). A break below the support trend lines (green) could see price test the next support (blue).

Currency pair USD/JPY

The USD/JPY uptrend stays intact if price manages to stay above the 100% Fibonacci level of wave 2 (blue/brown). The 61.8% and 78.6% Fibonacci levels of wave 2 (brown) are potential support levels.

The USD/JPY could be building a bullish turn if price manages to break above resistance (orange).

About the Contributor
Admiral Markets
Author: Admiral MarketsWebsite: http://www.admiralmarkets.com/
The Wave Analysis it for today the most flexible, powerful and perspective tool which allows to predict tendencies which lead to certain changes on financial charts on all time pieces. One of properties of this tool is its insufficient formalisation, proceeding from it the opinion of the author of the forecast made on the basis of the Wave Analysis always is subjective. As the Wave Structure constantly varies, the forecast on the basis of the Wave Analysis reflects opinion of the author at the moment of the forecast publication. The Wave Analysis is not trading system. It not the generator of signals on the conclusion or an exit 1from the transaction, therefore the schematical direction of movement of the price put on the chart should not be for the trader the guide to action on opening of positions. In case of formation in the market of conditions which, according to the author it is possible to use for drawing up of the trading plan - on a chart levels of acknowledgement of the chosen scenario, optimum areas of an input and levels of cancellation of the chosen scenario will be specified in addition.
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